Why Is Document Verification More Crucial Than Ever?
This digital age relies on online documents of all kinds, but most documents are being doctored using different technologies. According to a report, 50% of all CVs contain falsified data, making it harder for companies to find the employee they’re looking for. Background screening and pre-employment verification process is a crucial part of hiring procedures. With the pandemic causing millions of people to lose their jobs, employment fraud has seen a rise. Businesses need to make sure they make hiring decisions with accurate information about the candidates.
What’s the Need for Document Verification?
Apart from fake CVs, verifying an applicant’s employment information can help in reducing staff turnover while making sure businesses save cost, time, and resources, all the while eliminating fraud. For some industries where employee fraud can cause a lot of harm to a customer and the brand, verifying professional information is a mandatory element in the recruitment process.
The quality of professional verification checks varies from business to business. For companies investing in the verification of potential employees, it’s important to know that the third-party solution or company they use verifies information from Primary Sources. Technological solutions like DIRO’s online document verification can help businesses verify documents by capturing information directly from the original web source.
This type of verification is particularly important for high-risk sectors or senior positions. In employment fraud, previous employment certificates are the most common fraudulent documents. Third-party solutions and technological solutions need to be able to verify previous employment certificates.
Uncovering Employment Fraud
The question businesses need to ask themselves is why do candidates lie on their CVs? The first step is that they think they won’t get caught, or the businesses won’t bother verifying information on the CV or job application. If an employee thinks that they can land their dream job by lying a little bit, then the idea seems too good to let go of. With some major employee fraud in the USA, HR departments of organizations are trying to uncover employment fraud. The verification process of the companies is usually a financial drain on the company’s resources.
Earlier, document verification was used by businesses for completing company-wide KYC compliance. Now, document verification is used to verify potential candidates to make sure the companies hire nothing but the best. The best way of verifying employee information is by verifying the documents provided by the employees.
High Competition Level in Job Market
The current job market after the impact of the pandemic is fierce, and employers are trying to find employees that aren’t lying on their CVs and job descriptions.
As the pandemic outbreak wreaks havoc with employment and finances, it’s not hard to understand why an incredibly competitive job market has become ground zero in employee fraud rates. Combine that with the fact that millions of people worldwide have lost their jobs, so companies need to hire the right kind of employee the first time around.
Can Blockchain Help in Fighting Document Fraud?
The verification process helps businesses in making the right hiring decisions. Although manual document verification took up much time and tampered documents can fool people manually verifying documents. The safest and the most secure way to ensure the validity of verified documents is by using blockchain technology.
Blockchain technology is a decentralized ledger that can record transactions and make them immutable. Each transaction (information) is added as a block and accessed by anyone in the chain. So, no central party controls the content in the blockchain, and no single person can make changes to the information stored on the blockchain.
When any information is stored on the blockchain, anyone can check the validity of the verification in real-time. So if a business chooses a third-party solution for verification, these solutions can help them verify employee information.
How does DIRO’s Online Document Verification Technology help?
Fraudsters complete fraud by making fake documents like previous employment certificates, experience letters, and more. Usually, these types of fraud go undetected as HR departments don’t have the expertise required to distinguish between fake and real documents. Technology helps in bridging the gap between the verification of fake and real documents.
DIRO’s online document verification solution helps businesses, financial institutions, banks, and any other industry in verifying online documents. DIRO can verify 7000+ document types online by capturing data directly from the source. DIRO can access thousands of databases to verify documents like bank statements, bank account holder information, tax return documents, employee documents, student records, insurance documents, and more.
DIRO verifies documents and provides 100% proof of authentication; the verified information is then placed on the blockchain with a digital hash that makes the document immutable. Businesses can use the technology to implement business-wide KYC compliance and reduce the risk of employee fraud.